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Daily Jurojin Archive
| Daily Jurojin - Wednesday, May 6, 2009 |
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Wednesday, May 6, 2009 A $2.2 billion dollar infectionThe Mexican finance minister thinks that the recent flu outbreak centered on its capital city might have cost the economy as much as $2.2 billion. Cancelled flights by airlines responding to a sudden change in holiday-goers travel destinations have caused a decline to half the normal hotel room occupancy rate.Yesterday, Mexico called off its Cinco de Mayo celebrations as the health experts reinforced the need to remain vigilant against the virus. Tourism is Mexico's third largest earner and has suffered badly during the past 10 days. But President Felipe Calderon has announced that the outbreak maybe waning and that it might be time to reopen business. Schools for younger children will reopen starting next Monday, while universities and high schools can return tomorrow. Television stations are showing pictures of more traffic returning to Mexico city and fewer people wearing face masks to help prevent the spread of the infection. Cafes are starting to open their shutters in a feeling of a return to normalcy. On Tuesday finance minister, Agustin Carstens announced a $1.3 billion stimulus package to pave way for a recovery in tourism and other small businesses hurt by the epidemic. For anyone thinking of taking a cruise or flying to Mexico, they should expect a tax cut to lower the cost of their vacation thanks to Senor Carstens. Meanwhile, small businesses will face a temporary reduction in health insurance premiums to help them weather the storm. Despite the appearance of a return to normalcy, health officials warn that perhaps the emergency measures have worked but that the epidemic could come back to bite the nation once workers return in their droves. Only time will tell, but the fact remains that infection rate at an average of 1.4 persons is very close to the normal flu rate of 1.3 infections per infected person. Greeting the stimulus plan and better tone to health news out of the Mexican government came a rally in bond prices and a rise in the value of the of the peso against the U.S. dollar - its biggest trading partner. The peso staged a strong rally to 13.1898 according to Bloomberg News creating its biggest rally in two weeks after the announcement of the package before dollar strength resumed. The Supreme Council of the Secret Order of Jurojin |
